Bsquare Reports Second Quarter 2012 Results
(firmenpresse) - BELLEVUE, WA -- (Marketwire) -- 08/09/12 -- (NASDAQ: BSQR), a leading enabler of smart, connected devices, today announced financial results for the second quarter and six months ended June 30, 2012. Total revenue for the quarter was $24.5 million, up 5% year-over-year, while total revenue for the six months was $50.1 million, up 1%. The net loss for the quarter was $202,000, or $0.02 per share, compared to net income of $21,000, or $0.00 per share, in the prior year, while the Company's net loss for the six months was $390,000, or $0.04 per share, compared to net income of $205,000, or $0.02 per share, in the prior year. EBITDAS for the quarter was $380,000, or $0.03 per share, down 57% year-over-year, while EBITDAS for the six months was $828,000, or $0.08 per share, down 53%.
Details as follows (unaudited, in 000's except per share amounts):
EBITDAS = Earnings before interest, taxes, depreciation, amortization and stock compensation expense. EBITDAS and EBITDAS Per Share-Diluted are non-GAAP measurements (reconciliation provided after financial statement tables).
Cash and Investments EoQ includes both short and long-term amounts (long-term at 6/30/12 = $875,000).
Brian Crowley, chief executive officer of Bsquare, commented on Q2 results and business activity, "Second quarter revenue came in at the high end of our expectations. We are currently focused on driving revenue growth in three areas: harvesting the investment we have made in our TestQuest product, expanding our service capabilities around the upcoming Windows 8 and Windows Phone 8 releases from Microsoft and growing our Microsoft Windows embedded licensing and service revenue in Europe. Revenue growth from our investment initiatives has been slower than we anticipated. Therefore, we made the difficult decision in July to reduce our R&D spending by approximately $1.3 million per year primarily through staff reductions. These reductions are in addition to the $1.6 million per year reduction in sales and service expense we made during the first quarter. We expect that the full impact of the R&D reductions will be realized in the fourth quarter, approximately 15% of which will impact software cost of goods sold. While we improved our service margins during the quarter, we still have more work to do. We are still carrying excess service capacity and expect that we will either absorb that capacity into new projects that start in the second half of the year, or we will work excess capacity down mainly through attrition and targeted staff furloughs. Our goal in adjusting expense levels is to be profitable at current revenue levels and at our current margin profile."
During Q2, the Company made progress on a number of key initiatives, including:
The Company renewed its OEM distribution agreement with Microsoft. The agreement, which is effective for the period July 1, 2012 to June 30, 2013, renews the Company's Microsoft distribution relationship for the 14th year and allows the Company to distribute the complete line of Microsoft Windows Embedded operating systems within the United States, Canada, Mexico and the Caribbean. The Company also distributes the entire Microsoft Windows Embedded portfolio in the United Kingdom and Germany;
The Company announced general availability of the next generation Mobile Development Platform (MDP/T) for Android tablets based on Qualcomm's Snapdragon™ S4 Pro Processor. The MDP/T provides application developers and device manufacturers with access to a high-performance Android 4.0 platform for developing, testing, optimizing and showcasing applications and games; and
The Company also announced general availability of a DragonBoard™ development platform for Android™, which is intended to facilitate development and testing by device makers, application developers and other hardware and software ecosystem suppliers who are working with devices that run on Qualcomm's Snapdragon™ S1 MSM7x27A processor.
The decrease in proprietary software revenue, down $935,000 or 54%, was driven by a significant decline in Texas Instruments OMAP-related revenue and Snapdragon devkit sales classified as proprietary software revenue in the prior year and which are now classified as third-party software sales;
The decrease in third-party software gross margin, down 12% or two percentage points, was driven by the fact that the prior year included a higher mix of non-Microsoft licensing revenue which carries a higher margin;
The increase in service margin, up 11% or two percentage points, was due to project overruns in the prior year, which did not reoccur to the same extent in the current year;
The decline in proprietary software margin, down 24% or 19 percentage points, was driven by lower revenue in the current quarter compared to a relative fixed cost of proprietary software sales;
The decline in operating expenses, down $433,000 or 9%, was primarily attributable to a decline in sales expense due to staff reductions and lower stock compensation expense; and
Quarter-end cash and investments of $20.8 million, including long-term amounts, declined by $2.4 million compared to June 30, 2011 due to the net cash used to date in the acquisition of MPC Data Ltd. in September 2011 of $4.8 million. Cash and investments increased $3.1 million from March 31, 2012.
The Company currently has the following expectations for Q3 2012:
Total revenue is expected to be in the range of $24 million to $26 million; and
Cash and investments are projected to decrease by approximately $500,000 due primarily to negative working capital effects.
Management will host a conference call today, August 9, 2012, at 5 p.m. Eastern Daylight Time (2 p.m. Pacific Daylight Time). To access the call dial 1-877-941-1428, or +1 480-629-9665 for international callers, and reference "BSQUARE Corporation Second Quarter 2012 Earnings Conference Call." A replay will be available for one week following the call by dialing 1-877-870-5176, or +1 858-384-5517 for international callers; reference pin number 4555079. An on-demand Webcast of the call will be available at in the investor relations section.
Bsquare, a global leader in embedded solutions, applies experience and expertise on leading platforms to create new connections with customers, new business models and to enable new ways of working and communicating. Bsquare serves customers by forging connections among the partners, people, tools and technology needed to create smart connected devices. For more information, visit .
This release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, among others, statements relating to our financial results in future periods such as anticipated revenue, margins, spending, profitability, and cash and investments; anticipated levels of capital expenditures; future market conditions; potential sales or projects in our pipeline; and expectations for specific customers, geographies or products. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: whether we are able to maintain our favorable relationship with Microsoft; changes in customer demand for our engineering services; the extent to which we are successful in gaining new long-term relationships with customers and retaining existing ones; our ability to execute our sales and marketing strategies for our service offerings, third-party products, and our proprietary products such as TestQuest; our ability to execute our international expansion strategies; our success in leveraging strategic partnering initiatives with companies such as Qualcomm; our management of risks associated with protection of intellectual property and potential infringement claims; our success in integrating acquisitions such as MPC Data; and such other risk factors as discussed in our most recent Annual Report on Form 10-K and other filings with the SEC. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. Except as may be required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
BSQUARE is a registered trademark of BSQUARE Corporation. All other product and company names herein may be trademarks of their respective owners.
Scott Mahan
BSQUARE Corporation
+1 425.519.5900
Brett Maas
Hayden IR
+ 1 646.536.7331
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 09.08.2012 - 20:10 Uhr
Sprache: Deutsch
News-ID 173446
Anzahl Zeichen: 0
contact information:
Town:
BELLEVUE, WA
Kategorie:
Hardware
Diese Pressemitteilung wurde bisher 272 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Bsquare Reports Second Quarter 2012 Results"
steht unter der journalistisch-redaktionellen Verantwortung von
Bsquare Corporation (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
